The blockchain and cryptocurrency space is scaling at a rapid rate. Crypto startups are popping up on a weekly basis, and a lot of these businesses are in need of funding. Binance, one of the world’s largest and most popular cryptocurrency exchanges, is set to launch a $1 billion venture capital fund to help boost this growing industry.
Binance will be using its BNB token, which currently has a market cap of $1.6 billion to make investments. The company will be primarily funding crypto and blockchain startups, specifically payments/wallet, security token platforms, decentralized exchanges, alternative trading systems, and other blockchain funds.
Ella Zhang, head of the companies blockchain fostering program, Binance Labs, explained that they are seeking at least 20 funds to invest in, and each of these funds must already have $100 million in assets under management to be eligible for funding.
The first project to be funded by Binance Labs is a ride-sharing app that will be supported by blockchain technology. CEO of the new app, Weixing Chen, explained that this would be the first app to test blockchain technology on a massive social scale.
Binance was founded in 2017 and is already using its wealth to fund other startups and foster growth. This news is a testament to the exponential growth of cryptocurrency and blockchain technologies.